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Defence Science and Technology Stategy
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An Economics Perspective

Defence R&D Canada - Centre for Operational Research and Analysis, Ottawa ON (CAN);Operational Research Div, Ottawa ONT (CAN) Central Operational Research Team

Abstract

This paper is exploratory in nature and provides a macro-level assessment of the Department of National Defence (DND) Science and Technology (S&T) strategy. The primary tool of assessment is economics since it is the study of scarce resources, which happen to have alternate uses. Specifically, military budgets are at best constant as governments have to contend with other priorities, such as an aging population. In addition, within the S&T domain, defence research and development (R&D) have opportunity costs through the use of scarce scientific personnel and assets that could be used for civilian research. In addition, the paper examines current Federal S&T strategies as well as previous industrial policies such as the Industrial and Regional Benefits (IRB) program to draw lessons learned. Some transaction cost economics aspects of a potential public-private partnership are also explored to provide some policy guidance.